Walmart, Target Face FDA Heat After Recalled Baby Formula Tied To Infant Botulism Found In Stores

The FDA sent letters dated Dec. 12 to both Walmart and Target, highlighting that the recalled baby formula was found on the shelves at multiple stores.

• The agency highlighted that keeping the product on shelves is in violation of the law and urged the companies to comply with recall protocol. 
• Walmart and Target now have 15 working days to respond to the FDA in writing regarding the steps being taken to address any violations. 
• In a letter to Target, the FDA also highlighted that the recalled baby formula was part of a sale at one of its stores days after the recall.

Walmart shares dropped 1% on Monday morning after the U.S. Food and Drug Administration flagged that the retailer is continuing to sell recalled ByHeart baby formula under probe for infant botulism.

The FDA said in a letter addressed to Walmart CEO Doug McMillon that its investigators and state and local partners reported that recalled ByHeart formula continued to be found on Walmart store shelves in multiple locations across 21 states after the company was notified of the recall. The agency further highlighted that keeping the product on shelves is in violation of the law and urged the company to comply with recall protocol.

The FDA highlighted that Walmart store associates provided multiple explanations for the continued presence of the recalled product, including lack of awareness of the recall notice, confusion regarding which specific lots were affected, among others.

While the FDA requested information regarding the actions taken by the retailer to ensure the recalled product is off shelves, Walmart didn’t respond appropriately despite follow-up emails, the agency noted. Walmart now has 15 working days to respond to the FDA in writing regarding the steps being taken to address any violations.

Infant Botulism Outbreak And ByHeart Recall

The FDA and its partners have been investigating a multistate outbreak of infant botulism linked to ByHeart Whole Nutrition Infant Formula. According to the Centers for Disease Control and Prevention (CDC), 51 infants aged 16 to 264 days of age from 19 states have suspected or confirmed infant botulism as of December 10. The CDC has determined that the ByHeart Whole Nutrition Infant Formula, adulterated by the presence of Clostridium botulinum spores, is the source of the outbreak. ByHeart initiated a voluntary recall of all the infant formula in early November.

Infant botulism is a serious illness in babies under one year old, caused by Clostridium botulinum spores growing in their gut and producing a toxin, leading to muscle weakness, poor feeding, a weak cry, and potentially paralysis, with constipation often being the first sign.

Target Receives Similar Letter

FDA also issued a similar letter to Target Corporation, highlighting that the recalled infant formula remained on shelves at multiple Target store locations across 20 states after it was notified of the recall. It also highlighted that the products were part of a discounted sale for a few days in the second half of November.

“Once your firm has been made aware of a recall or potential safety issue, you should take action to immediately remove the affected product from distribution and sale, cease all further shipment or use, and implement all necessary measures to prevent further exposure to consumers or downstream distribution,” FDA wrote to both Target and Walmart.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around WMT and TGT stayed within ‘bearish’ and ‘neutral’ territory, respectively, at the time of writing.

While WMT shares have gained 29% this year, TGT stock has dropped 28%. 

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